Markets are trading in mild risk off sentiment, while treasury yields also surge. New Zealand Dollar is leading other commodity currencies lower, and Sterling is week too. On the other hand, Euro and Swiss Franc are currently the stronger ones, followed by Dollar and Yen. But overall, it should be noted that Euro's recovery is rather weak and risk remains higher for selloff to resume sooner or later. Technically, GBP/USD's breach of 1.3351 temporary low suggests that recent decline is ready to resume. We'd pay attention to see if the selloff would accelerate during the rest of the day. At the same time, We'll also see if GBP/JPY would follow by breaking through 152.35 temporary low. If that happens, it would be a signal of more broad-based weakness in the Pound. In Europe, at the time of writing, FTSE is up 0.09%. DAX is down -0.67%. CAC is down -0.23%. Germany 10-year yield is up 0.062 to -0.238. Earlier in Asia, Hong Kong HSI dropped -1.20%. China Shanghai SSE rose 0.20%. Singapore Strait Times dropped -0.30%. Japan was on holiday. |
